Market Insights
Get insights into what has been happening in US and world markets, and other economic indicators.
Bottom Line Up Front
- U.S. stocks gained in May, with the S&P 500 up 6.15% and the Nasdaq jumping 9.56%.
- Trade deal progress and soft inflation data pushed the S&P 500 to erase its year-to-date losses.
- Internationally, European markets posted gains ranging from France's +2.08% to Italy's +6.60. Pacific Rim markets also rose with China's Hang Seng Index at 5.29%, Korea's KOSPI at 5.52% and Japan's Nikkei posting an increase of 5.33%.
Time to Read
6 minutes
June 30, 2025
Monthly Market Insights: June 2025
U.S. Markets
Stocks saw solid gains in May as investors cheered progress on trade deals and upbeat first-quarter corporate reports. The Standard & Poor's 500 Index gained 6.15%, the Nasdaq Composite picked up 9.56% and the Dow Jones Industrial Average advanced 3.94%.
A Powerful Start
The month began on an upswing, thanks to solid quarterly corporate reports from mega-cap tech companies. The S&P 500 ended a 9-day winning streak on May 5, its longest in 20 years. Investors largely looked past a cautionary Fed statement following its two-day May meeting.
Erased Year-to-Date Losses
In early May, the U.S. and China agreed to dial back some tariffs, sparking a powerful rally. Soft inflation data also helped push stock prices higher. By the end of the week, the S&P 500 had erased its year-to-date losses.
Trade Progress
Stocks faced some pressure after credit rating agency Moody's downgraded the United States. But, markets reversed course after Memorial Day weekend, rallying after news that the European Union had agreed to accelerate trade talks with the U.S.
After a well-received quarterly corporate report from a mega-cap AI chipmaker, a trade update unsettled investors. When trading ended, the S&P 500 finished out the strongest month of May in 30 years.
Sector Scorecard
Ten of the 11 S&P 500 Index sectors finished the month in the green. Gains in four sectors drove an outsized impact on overall S&P 500 returns: Technology (+9.97%), Industrials (+8.84%), Consumer Discretionary (+8.38%) and Communication Services (+6.24%).10
Six sectors advanced but underperformed the overall Index: Financials (+4.51%), Utilities (+3.83%), Materials (+2.92%), Energy (+1.28%), Consumer Staples (+1.22%) and Real Estate (+1.04%). Health Care (-5.57%) was the only losing sector in May.
U.S. Market Recap
The Markets
| Market/Index | May 2025 Change | YTD Change |
|---|---|---|
| S&P 500 | 6.15% | 0.51% |
| NASDAQ | 9.56% | -1.02% |
| Russell 1000 | 5.20% | -7.35% |
| 10-Year Treasury | 4.42% | -0.16% |
The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance doesn't guarantee future results. U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid.
What Investors May Be Talking About
On June 9, Apple, Inc., one of the world's most influential tech companies, kicked off its annual Worldwide Developers Conference (WWDC). WWDC has become a seminal event for the industry.
Developers around the world can connect and attend more than 100 sessions, many of which are livestreamed. It's also a key venue where insights into future trends for the whole industry are showcased. One area of great interest is the subject of AI.
Most industry members believe that it still has considerable room to grow, and they will be evaluating opportunities during the five-day conference. Hundreds of thousands attended online, with a much smaller group attended in person.
World Markets
The MSCI EAFE Index rose 3.97% in May, its fifth consecutive winning month. In Europe, Italy (+6.60%), Spain (+6.51%) and Germany (+6.67%) posted solid gains. The United Kingdom (+3.24%) and France (+2.08%) also closed the month higher.
Outside of Europe, Mexico picked up 2.81% while Brazil added 1.45%. Pacific Rim stocks also enjoyed a strong month. China's Hang Seng Index tacked on 5.29%, while Korea's KOSPI added 5.52%. Japan's Nikkei rose 5.33%.
Pacific Rim markets were also mixed, with Australia (+3.61%) and Korea (+3.04%) among the best performers. China’s Hang Seng index fell 4.33%.
World Market Recap
| Emerging Markets | May 2025 Change | YTD Change |
|---|---|---|
| Hang Seng (China) | 5.29% | 16.10% |
| KOSPI (Korea) | 5.52% | 12.43% |
| Nikkei (Japan) | 5.33% | -4.84% |
| Sensex (India) | 1.51% | 4.24% |
| EGX 30 (Egypt) | 1.16% | 9.28% |
| Bovespa (Brazil) | 1.45% | 13.92% |
| IPC All-Share (Mexico) | 2.81% | 16.82% |
| ASX 200 (Australia) | 3.80% | 3.38% |
| DAX (Germany) | 6.67% | 20.53% |
| CAC 40 (France) | 2.08% | 5.03% |
| IBEX 35 (Spain) | 6.51% | 22.05% |
| FTSE 100 (United Kingdom) | 3.24% | 7.33% |
| IT40 (Italy) | 6.60% | 17.26% |
The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance doesn't guarantee future results. International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
Indicators
- Gross Domestic Product (GDP). In the first quarter of 2025, the economy declined for the first time since 2022. It contracted at an annualized 0.2% rate, less than the initial estimate of 0.3%. The primary cause was a surge of imports ahead of tariffs taking effect, which drove up the trade deficit.
- Employment. Employers added 177,000 jobs in April, more than the 133,000 jobs economists were expecting. Unemployment was unchanged at 4.2%. Annualized wage growth remained steady at 3.8% in April, unchanged from the previous month.
- Retail Sales. Also in April, consumer spending rose 0.1% over March, which exceeded market expectations. Year over year, retail sales rose 5.2% in April, matching March's year-over-year rise.
- Industrial Production. Industrial output rose 1.5% in April, just missing market expectations of a 0.2% increase. An uptick in utilities offset declines in manufacturing and mining.
- Housing. High inventory and high mortgage rates continued to vex the housing market. Housing starts rose in the South and Northeast regions, but fell in the Midwest and the West. In April, they rose 1.6% over March's numbers, slightly below expectations. Multifamily starts rose 11.1%, while single-family starts fell 2.1%.
Sales of existing homes fell 0.5% month over month in April. Year over year, sales fell 2%, missing expectations of a 2.7% gain. The median existing home sales price was $414,000.
New home sales rose 10.9% in April over the prior month, aided by builder incentives aimed at improving affordability. Year over year, new home sales rose by 3.3%. There were 504,000 unsold new homes on the market in April, equal to 8.1 months of supply at the current pace of sales.
- Consumer Price Index (CPI). Consumer prices rose 0.2% in April over the prior month, in line with economists' expectations. Year over year, prices rose 2.3%, slightly lower than the 2.4% expected. It was the lowest year-over-year rate since February 2021. Core inflation, which excludes volatile food and energy prices, rose 0.2% month over month and 2.8% year over year—slightly better than and in line with expectations, respectively.
- Durable Goods Orders. Orders of manufactured goods designed to last three years or longer declined 6.3% in April, which was better than expected.
The Fed
At its early May meeting, the Federal Open Market Committee (FOMC) held the Fed funds rate at the 4.25 to 4.5% target range. The Fed cited uncertainty around trade and the need to balance its dual goals of two% inflation and maximum employment.
The Fed observed that economic growth and labor market conditions continued to be "solid" and that unemployment had "stabilized," noting that inflation was still "somewhat elevated."
The FOMC's most recent meeting was June 17–18. For the fourth consecutive time, they decided to hold the rate steady at 4.25% to 4.50%. The decision was unanimous.
By the Numbers: Camping
$83 Billion
The global campoing and caravanning market size in 2025
$199
The average daily amount spent by campers
72%
The proportion of campers who say campoing is a cost-effective vacation
331,863,358
The number of recreational visits to national parks last year
17,187,508
The number of visits to the most visited spot for recreational visits (Golden Gate National Recreation Area)
85,160,487
The total number of acres of national parks in the U.S.
356,089
The number of visits to the most visited spot for tent camping (Yosemite National Park)
33%
The proportion of overnight camping in national, state and provincial parks
53%
The proportion of campers who bring their dogs, compared to those...
13%
...who bring their siblings versus those...
10%
...who bring their parents
36%
The share of campers who work while camping
43%
The share of campers who travel more than 100 miles to their campground
11%
The proportion of campers who camp at a glampground
31%
The share of campers who consider themselves "lifelong" campers
16%
The share of campers who are new to camping
Disclosures
Data sources: Based on data from WSJ.com; CNBC.com; Sectorspdr.com; CMEgroup.com; MSCI.org; CNet.com; TheBusinessResearchCompany; Tradingeconomics.com; KOA.com; Finance.Yahoo.com; NPS.gov.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, or state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Investing involves risks, and investment decisions should be based on your own goals, time horizon and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
Any companies mentioned are for illustrative purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, timeframe, and risk tolerance.
The forecasts or forward-looking statements are based on assumptions, subject to revision without notice, and may not materialize.
The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. The S&P 500 Composite Index is an unmanaged group of securities considered to be representative of the stock market in general. The Nasdaq Composite is an index of the common stocks and similar securities listed on the Nasdaq stock market and considered a broad indicator of the performance of stocks of technology and growth companies. The Russell 1000 Index is an index that measures the performance of the highest-ranking 1,000 stocks in the Russell 3000 Index, which is comprised of 3,000 of the largest U.S. stocks. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark for the performance in major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. Index performance is not indicative of the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost.
International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
The Hang Seng Index is a benchmark index for the blue-chip stocks traded on the Hong Kong Stock Exchange. The KOSPI is an index of all stocks traded on the Korean Stock Exchange. The Nikkei 225 is a stock market index for the Tokyo Stock Exchange. The SENSEX is a stock market index of 30 companies listed on the Bombay Stock Exchange. The Jakarta Composite Index is an index of all stocks that are traded on the Indonesia Stock Exchange. The Bovespa Index tracks 50 stocks traded on the Sao Paulo Stock, Mercantile, & Futures Exchange. The IPC Index measures the companies listed on the Mexican Stock Exchange. The MERVAL tracks the performance of large companies based in Argentina. The ASX 200 Index is an index of stocks listed on the Australian Securities Exchange. The DAX is a market index consisting of the 30 German companies trading on the Frankfurt Stock Exchange. The CAC 40 is a benchmark for the 40 most significant companies on the French Stock Market Exchange. The Dow Jones Russia Index measures the performance of leading Russian Global Depositary Receipts (GDRs) that trade on the London Stock Exchange. The FTSE 100 Index is an index of the 100 companies with the highest market capitalization listed on the London Stock Exchange.
Please consult your financial professional for additional information.
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